On taxes and other obligatory payments to the budget (Tax Code)

Article 435. Refund of VAT on goods, works, services purchased with grant funds

1. Excess VAT on goods, works, services purchased with grant funds is refunded to:

1) a grant recipient that is a state body, which is a beneficiary in accordance with an international treaty providing for a grant to the Republic of Kazakhstan, and assigns a contractor, unless otherwise provided for by the said international treaty of the Republic of Kazakhstan;

2) a contractor that is a person assigned by a grantee for the purposes of grant implementation (hereinafter referred to as the contractor).

2. Tax authorities shall refund the VAT provided for in paragraph 1 of this article, paid to suppliers of goods, works, services purchased with grant funds, within thirty business days of the date of submission of a tax application for the refund of VAT on goods, works, services purchased with grant funds, provided all of the following requirements are met:

1) a grant, with the funds of which goods, works, services were purchased, was provided in the line of states, national governments, international organizations;

2) goods, works, services are purchased exclusively for the purposes of grant implementation;

3) goods are sold, works are performed, services are rendered under an agreement (contract) concluded with a grantee or a contractor, assigned by the grantee, for the purposes of grant implementation.

3. In accordance with this article, VAT shall be refunded to grantees or contractors in the manner established by Articles 101 and 102 of this Code on the basis of documents confirming the payment of VAT with grant funds.

4. To refund VAT in accordance with this article, a grantee or a contractor shall submit to the tax authority at the location, along with a tax application for the refund of VAT on goods, works, services purchased with grant funds, the following documents:

1) a copy of a treaty on grant giving concluded by the Republic of Kazakhstan and a foreign state, a foreign national government or an international organization included in the list approved by the Government of the Republic of Kazakhstan;

2) a copy of an agreement (contract) concluded by the grantee or the contractor with a supplier of goods, works, services;

3) a copy of the document confirming authorizing the contractor to act as such, when the latter submits a tax application for the refund of VAT;

4) documents confirming the shipment and receipt of goods, works, services;

5) an invoice issued by the supplier that is a VAT payer, in which the amount of VAT is indicated in a separate line;

6) a delivery note, consignment note;

7) a document confirming the receipt of goods by the financially liable person of the grantee or the contractor;

8) certificates for works performed, services rendered and their acceptance by the grantee or the executor, issued in accordance with the established procedure;

9) documents confirming the payment for received goods, works, services, including the payment of VAT.

The refund of VAT provided for in this article shall also be made to grantees or contractors that are not VAT payers.
Article 436. Refund of VAT to diplomatic missions and equivalent representative offices of foreign states, consular offices of a foreign state accredited in the Republic of Kazakhstan and to their staff

1. VAT shall be refunded to diplomatic missions and equivalent foreign representative offices, consular offices of a foreign state accredited in the Republic of Kazakhstan (hereinafter referred to as the mission) and persons that are diplomatic, administrative and technical staff of these missions, including their family members living with them, consular officials, consular employees, including their family members living with them (hereinafter referred to as the staff), for goods purchased, works performed and services rendered in the territory of the Republic of Kazakhstan, provided that such a refund is provided for by international treaties to which the Republic of Kazakhstan is a party, or by documents confirming the principle of reciprocity in applying VAT reliefs.

VAT is refunded by tax authorities at the location of the missions included in the list approved by the Ministry of Foreign Affairs of the Republic of Kazakhstan.

2. Based on the principle of reciprocity, restrictions on the amount of VAT and conditions of its refund may be established in respect of some missions.

The list of the missions, in whose respect restrictions on the refund of VAT are established, are approved by the Ministry of Foreign Affairs of the Republic of Kazakhstan in coordination with the authorized body.

3. Unless otherwise established by paragraph 2 of this article, VAT is refunded to the missions provided that the amount of goods purchased, works performed, services rendered, including VAT, in each separate invoice, issued in the manner established by this Code, and documents, confirming the fact of payment, is equal to or exceeds 8 times the monthly calculation index established by the law on the national budget and effective as of the date of issuance of an invoice.

Restrictions established by this paragraph shall not apply to services for telecommunications, electricity, water, gas and other utilities.

4. Tax authorities shall refund VAT on the basis of spreadsheets (registers) and copies of documents confirming the payment of VAT (invoices issued in the manner established by this Code, documents confirming the payment) prepared by the missions.

With respect to staff members of the mission, they are required to submit copies of accreditation documents, issued by the Ministry of Foreign Affairs of the Republic of Kazakhstan, in addition.

Paper-based spreadsheets (registers) for goods purchased, works performed, services rendered shall be prepared by the missions for a reporting quarter on a quarterly basis in the form established by the authorized body, certified with the seal and signed by the head or another authorized person of the mission.

Spreadsheets (registers) prepared by the missions are forwarded to the organization for work with diplomatic missions of the Ministry of Foreign Affairs of the Republic of Kazakhstan along with copies of documents confirming the payment of VAT (invoices issued in the manner established by this Code, documents confirming the fact of payment), within the month following a reporting quarter, except for cases of expiration of the term of stay in the Republic of Kazakhstan of a staff member (staff members) of the mission.

5. With the principle of reciprocity confirmed, the organization for work with diplomatic missions of the Ministry of Foreign Affairs of the Republic of Kazakhstan shall submit spreadsheets (registers) with copies of documents confirming the payment of VAT (invoices issued in the manner established by this Code, documents confirming the fact of payment), along with an accompanying document, to the tax authority at the location of the missions accredited in the Republic of Kazakhstan.

6. Tax authorities refund VAT to the missions within thirty business days of the receipt of spreadsheets (registers) and documents, confirming the payment of VAT, from the organization for work with diplomatic missions of the Ministry of Foreign Affairs of the Republic of Kazakhstan and notify thereof in writing.

Having checked spreadsheets (registers) and copies of documents confirming the payment of VAT, tax authorities notify the organization for work with diplomatic missions of the Ministry of Foreign Affairs of the Republic of Kazakhstan of the refund of VAT and (or) refusal to refund it.

If the refund of VAT is refused, tax authorities shall inform on the violations and specify documents, in which they were committed.

7. In case of detecting violations in the documents submitted by the missions, including the failure to indicate a VAT amount in a separate line, tax authorities conduct a third-party audit of a supplier of goods, works, services.

In case of a failure to eliminate violations, found in the course of a third-party audit, during a period of refund established by paragraph 6 of this article, those amounts of VAT shall be refunded, with respect to which violations were not identified or were eliminated.

If violations are eliminated after a third-party audit is completed, VAT is refunded on the basis of an additional spreadsheet (register) submitted along with copies of documents confirming the payment of VAT (invoices issued in the manner established by this Code, documents confirming the payment).

The amount of VAT not claimed for refund for a quarter, in which goods were purchased, works were performed, services were rendered, may be claimed for refund by the missions on the basis of a spreadsheet (register) submitted along with copies of documents confirming the payment of VAT (invoices issued in the manner established by this Code, documents confirming the fact of payment).

8. Missions shall submit documents to tax authorities in Kazakh and (or) Russian.

If some documents are drawn up in foreign languages, it is required to produce their Kazakh and (or) Russian translation, certified with the seal of a mission.

9. Tax authorities refund VAT to relevant accounts of the missions and (or) staff members of the missions, which were opened with banks of the Republic of Kazakhstan in the manner prescribed by the legislation of the Republic of Kazakhstan.
Chapter 50. FEATURES OF IMPOSING VAT IN CASE OF EXPORT AND IMPORT OF GOODS, PERFORMANCE OF WORKS, RENDERING OF SERVICES IN THE EURASIAN ECONOMIC UNION